Life Insurance

How I know if a policy of life insurance is exact for me?

Read the policy carefully to make sure that it achieves your personal goals. Since your policy is a legal document, it is important that you include/understand exactly what it provides. Ask an explanation for all point by point that is not very clear and ensure you that the agent explains articles which you do not include/understand.

If your agent cash recommends a policy of money value, require:

• Are the premiums in my budget?
• Can I make with these premiums above the long run?

The insurance of money value cash ensures protection for your whole life. Cancellation of a policy of money value cash after only a few years can be an expensive manner to obtain the short-term protection of insurance. If you do not envisage to keep the policy for the long run, consider another kind of insurance such as the temporary insurance.

If you consider a policy of limit, ask:

• How long can I keep this policy? If I want to replace it for a specific number of years, or until a certain age, which are the limits of renewal?
• My increase in premiums? If so, will the increases start annually or after five or 10 years?
• Can I convert into policy of money value cash? Will I require for an medical examination if and when I converted?
• If it has a return of advantage of premium, ask: What the policy would it cost without this advantage? Will all the premiums be refunded?

Is an illustration of policy a legal document, like a contract?

An illustration of policy is not part of the policy of life insurance and is not a legal document. Legal engagements are defined in the contract of policy. An illustration of policy, however, can help you to include/understand how a policy functions.

What is in an illustration of policy?

An illustration of policy shows that financial projections for every year have you there political included/understood, but not limited to, the sums due of best quality, the money values cash, and the death benefits. For a policy of limit, projections are prolonged at the end of the limit. With a policy of money value cash, projections prolong the past your 100th birthday.

Your effective costs and advantages could be higher or inferior those in the illustration because they depend on the future financial results of the insurance company. However, when figures are guaranteed, the insurance company will honour them independently of its financial success. Ask your agent which figures are guaranteed and what are not.

An illustration of policy can be complicated. Your agent or financial adviser can explain the information which you do not include/understand.

Queest this which I should seek in an illustration of policy?

Study the illustration of policy to answer what follows:

• My classification (C. - with-D., smoker/nonsmoker, male is it female) correct?
• When the premiums are due-monthly, annually, or according to another program?
• Which amounts are guaranteed and what are not?
• The policy has could a guaranteed death benefit or the death benefit to change according to interest rates or other factors?
• Does the policy offer dividends or appropriations of interest which could increase my money value cash and death benefit or to reduce my premium?
• Will my premiums be always identical? Could the increase in premiums if future interest rates or profitabilities of committed capital are lower than the illustration supposes?
• If the illustration proves that I will not have to carry out payments of best quality after a certain period, is there a chance that I should start to carry out payments still constantly in the future?